Hong Kong stocks end flat due to mixed reactions among investors

Hong Kong stocks ended flat in lacklustre session on Friday, as optimism from the Sino-U.S. trade talks were offset by a drop in index-heavy real estate and financial shares. At the close of trade, the Hang Seng index eased less than 0.1 per cent to 27,930.74 points. The benchmark index gained 1.3 per cent this week.

The Hang Seng China Enterprises Index added 0.3 per cent on Friday, up 1.8 per cent week-on-week. Most other sectors climbed after China and the United States made progress in their trade negotiations. The sub-index tracking energy shares ended 0.3 per cent higher, while the IT sector rose 0.9 per cent.

U.S. President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal, noting that Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin were invited to bring the U.S. negotiating team to Beijing around mid-February. The comment came after the latest round of Sino-U.S. trade talks in Washington, and a meeting between Trump and Liu He, Chinese vice premier. The Chinese delegation said in a statement that the two days of high-level talks made "important progress," official Xinhua news agency reported.

For the first time in two years, Hong Kong's property values in December dropped below outstanding mortgage loans, the Hong Kong Monetary Authority said on Thursday. Meanwhile, Hong Kong private residential prices slip for 5 consecutive months, sliding 2.4 pct in December, according to government data. That pressed share prices of some of the city's largest developers and lenders. The Hang Seng's sub-index for properties dropped 0.8 per cent, while financials slid 0.4 per cent. 

The top gainer on the Hang Seng was WH Group Ltd, which gained 5.7 per cent, while the biggest loser was Swire Pacific Ltd, which dropped 1.8 per cent. Around the region, MSCI's Asia ex-Japan stock index was close to flat, while Japan's Nikkei index closed up 0.1 per cent. The top gainers among H-shares were CITIC Securities Co Ltd, which ended up 5 per cent, followed by GF Securities Co Ltd, which closed 4.1 per cent higher and Shenzhou International Group Holdings Ltd, which ended up 4 per cent.

The three biggest H-shares percentage decliners were China Tower Corp Ltd, which ended down almost 3 per cent, China Vanke Co Ltd, which closed 2.5 per cent lower and China Merchants Bank Co Ltd, which closed 1.6 per cent weaker.

About 1.72 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 2.29 billion. At the close, China's A-shares were trading at a premium of 16.83 per cent over the Hong Kong-listed H-shares. The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, rose 0.05 per cent to 4,946.66 points.

(With inputs from agencies.)